Description

Want the most income for the least amount of work? Want to have lower effective taxes? Join WTR as we discuss The Wealth Secrets of Passive Cashflow with Lane Kawaoka from Simple Passive Cashflow.  You will learn how to quickly determine if a property will cashflow, best assets for passive income, how to manage them as well as secrets the wealthy use to prepare for and invest in new opportunities. As always, there’s a Value Bomb of something to watch out for.

Ingenious tactics to accumulate wealth, for people who see things differently.

Lane Kawaoka

lane@simplepassivecashflow.com

Simple Passive Cashflow

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• • • Bought rental in 2009, made good cashflow
      • Focused on saving more $ to buy more rentals
      
      
    • 7 years to get 11 rentals
      • Now 1100 rentals and was able to quit day job
      
      
    • First couple rentals in Primary market of Seattle
      • Found primary markets costs are too high so profit is low
      
      
    • Found secondary markets have higher rent to value ratios
    • Figure out rent to value ratio
      • Monthly rent divided by purchase price
      • Tries to look for 1% or higher for figuring out if property will cashflow
      
      
    • Appreciation is gambling, cashflow is the sure thing
    • Recommend people under $500k net worth, start by building low risk, single family rentals
    • Focus on passive investment
      • It’s not “active” investments
      • No tricks or games like no money down payments
      • Find quality investments
      • Use property managers
      •  property inspectors to make sure good quality asset
      • 1-2 hours per week
      
      
    • Look for other people doing passive investments
      • Local REIAs/real estate clubs usually have active investors of lower net worth
      • Use what they are using,
        • Markets
        • Providers
        • Property managers
        
        
      
      
    • Since most passive investments need $20k+ to get started, there’s less people competing for those assets
    • Single family homes are good to sell to retail buyers, they are an easier exit strategy
      • Duplex, quads etc. are more difficult to sell
      
      
    • Passive investor needs to focus on being an investor, not a landlord
      • Hire 3rd party property manager for that
      • Need rent to value ratio over 1.0 in order to afford paying for the property manager
      
      
    • This strategy may cost a little more, but...